I think this attack is really interesting and novel, but 512 login attempts is pretty high. I have a Mega account and I think I've logged in less than 50 times in the entire lifetime of my account, including when it was still controlled by Kim Dotcom. If you're an interesting enough target to use this on, I don't see why the Mega server that delivers the javascript for encryption can't be compromised instead, and just harvest the passphrase when it's submitted to login the first time?
I don't know what you'd have to do to convince someone to login 512 times via social engineering, either. Presumably, a user who is dedicated and uses the service on a daily basis might hit this through normal usage in a year and a half? That's definitely plausible, but how many users are initiating new logins each time? How many will just stay logged into the app and never login?
I guess for some percentage of people (e.g., people who are logging in each time via Tails, and do it twice a day) this attack is acutely viable, but it surely can't be all users.